The importance of product selection for a platform operation is self-evident, but further, price is also a top priority. A reasonable price range can better attract traffic and promote transactions. Amazon product selection is to start with “cheap”, find hot items for the store, and then sell them at competitive prices to obtain high profits.
The price of the product is between 10-50 US dollars. The price of the product is very important and is the primary consideration for most sellers before placing an order. 10-50 US dollars is undoubtedly the most suitable range. On the one hand, it is easy for sellers to have a desire to buy. On the other hand, it is a low threshold for sellers with less funds to enter cross-border e-commerce, and the production cost of items in this range in China is also low.
The actual price range of product selection. The profit of a single product on the Amazon platform = (single product sales-delivery fee-platform commission) * exchange rate-single product head-way fee-others (product cost, product packaging product domestic shipping fee). Generally speaking, the product Yongjian is about 15%-26% of the selling price. For example, if an item sells for 50 US dollars, then Amazon’s commission is 50*6%=9 US dollars. We use the Amazon Logistics Revenue Calculator to know that the delivery fee is about 11 US dollars, and we can know that the cost of the Amazon platform is 20 US dollars.
Then there is the international logistics part, also known as the FBI first-leg fee, which has three methods: express delivery, air delivery, and sea delivery. At present, express delivery has the highest cost of 40 yuan/KG (using international air transport), which is suitable for urgent replenishment; air delivery can be understood as a low-end version of express delivery, which is also air delivery 25/KG, and the time is about 10-16 days; the lowest price of sea delivery is 10/KG, and the time is the longest, usually between 1 month and 1.5 months. If an item weighs less than 1 kilogram, the air delivery fee is about 30 yuan.
If the price of a single product is 50 US dollars, and the profit wants to be controlled at about 35-40%, we can use the formula, 125=(50 US dollars-20 US dollars)*7-30-others (product cost, product packaging, domestic shipping cost), it can be concluded that the cost of a single product including packaging and shipping is about 55 yuan. The price of a single item sent by the manufacturer is 3 yuan, and the packaging fee you pay is 2 yuan, so the price range of your selected products is generally within 50 yuan.
You can also infer your own product pricing range based on the profit you want. Cross-border e-commerce has remained a hot commodity in recent years. The growing proportion of online shopping and the number of sellers will remain in high demand for a long time in the future.